Synopsis: Early education scholarship pilot program. Establishes the
early education scholarship pilot program to provide supplemental
funding for eligible children receiving eligible services from certain
early education providers. Establishes the early learning advisory
committee. Provides that a child who receives an early education
scholarship and meets certain other criteria is eligible for purposes of
the school scholarship program.

Effective: Upon passage; July 1, 2013.

Behning, Crouch

January 15, 2013, read first time and referred to Committee on Education.

Introduced

First Regular Session 118th General Assembly (2013)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in thisstyletype.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
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between statutes enacted by the 2012 Regular Session of the General Assembly.

HOUSE BILL No. 1004

A BILL FOR AN ACT to amend the Indiana Code concerning
human services.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 12-7-2-75.3; (13)IN1004.1.1. -->
SECTION 1. IC 12-7-2-75.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 75.3. "Eligible child", for purposes of
IC 12-17.2-3.7, has the meaning set forth in IC 12-17.2-3.7-1.

SOURCE: IC 12-7-2-76.2; (13)IN1004.1.2. -->
SECTION 2. IC 12-7-2-76.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 76.2. "Eligible provider", for purposes of
IC 12-17.2-3.7, has the meaning set forth in IC 12-17.2-3.7-2.

SOURCE: IC 12-7-2-76.3; (13)IN1004.1.3. -->
SECTION 3. IC 12-7-2-76.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 76.3. "Eligible services", for purposes of
IC 12-17.2-3.7, has the meaning set forth in IC 12-17.2-3.7-3.

SOURCE: IC 12-7-2-135.8; (13)IN1004.1.4. -->
SECTION 4. IC 12-7-2-135.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 135.8. "Paths to QUALITY
program", for purposes of IC 12-17.2-3.7, has the meaning set
forth in IC 12-17.2-3.7-4.

SOURCE: IC 12-7-2-146; (13)IN1004.1.5. -->
SECTION 5. IC 12-7-2-146, AS AMENDED BY P.L.110-2010,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 146. "Program" refers to the following:
(1) For purposes of IC 12-8-12.5, the meaning set forth in
IC 12-8-12.5-1.
(2) For purposes of IC 12-10-7, the adult guardianship services
program established by IC 12-10-7-5.
(3) For purposes of IC 12-10-10, the meaning set forth in
IC 12-10-10-5. (4) For purposes of IC 12-17.2-3.7, the meaning set forth in
IC 12-17.2-3.7-5.(4) (5) For purposes of IC 12-17.6, the meaning set forth in
IC 12-17.6-1-5.

SOURCE: IC 12-7-2-169.7; (13)IN1004.1.6. -->
SECTION 6. IC 12-7-2-169.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 169.7. "Scholarship", for
purposes of IC 12-17.2-3.7, has the meaning set forth in
IC 12-17.2-3.7-6.

SOURCE: IC 12-17.2-3.7; (13)IN1004.1.7. -->
SECTION 7. IC 12-17.2-3.7 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Chapter 3.7. Early Education Scholarship Pilot Program
Sec. 1. As used in this chapter, "eligible child" refers to an
individual who:
(1) is at least three (3) years of age and less than five (5) years
of age on August 1 of the state fiscal year for which a
scholarship is sought;
(2) is a resident of Indiana or otherwise has legal settlement
in Indiana, as determined under IC 20-26-11;
(3) is a member of a household with an annual income that
does not exceed one hundred eighty-five percent (185%) of the
federal poverty level; and
(4) receives at least one hundred eighty (180) days of eligible
services per year from an eligible provider.
Sec. 2. As used in this chapter, "eligible provider" refers to a
person that:
(1) provides eligible services;
(2) is located in a county in which the program is
implemented; and
(3) administers the kindergarten readiness assessment
adopted by the department of education.
Sec. 3. As used in this chapter, "eligible services" refers to a

program of early education services that:
(1) meets the standards of quality recognized by a Level 3 or
Level 4 Paths to QUALITY program rating; or
(2) is nationally accredited by an accrediting body recognized
by the division.
Sec. 4. As used in this chapter, "Paths to QUALITY program"
refers to a voluntary quality rating and improvement system for
child care administered:
(1) statewide by the division; and
(2) under the trademark "Paths to QUALITY".
Sec. 5. As used in this chapter, "program" refers to the early
education scholarship pilot program established by section 7 of this
chapter.
Sec. 6. As used in this chapter, "scholarship" refers to an early
education scholarship awarded under this chapter.
Sec. 7. (a) The early education scholarship pilot program is
established to reduce the out-of-pocket fees that an eligible child or
an eligible child's parent, guardian, or custodian would otherwise
be required to pay to an eligible provider for the eligible child to
receive eligible services after the application of the maximum
amount of all other state and federal grants and distributions
available for reimbursement for the eligible services.
(b) The division shall administer the program, which must begin
on July 1, 2013, in not more than five (5) counties in Indiana,
chosen by the division.
Sec. 8. (a) An eligible child may receive a scholarship through
the program in accordance with this chapter.
(b) A scholarship that has been awarded for an eligible child
may be terminated at any time that the eligible child fails to
comply with the requirements for eligibility established by or
under this chapter.
(c) A scholarship is not a grant to or contract with a provider
but must be considered assistance to the eligible child and the
parent, guardian, or custodian of the eligible child.
(d) The amount of a scholarship provided for an eligible child
may not be treated as income or a resource for purposes of
qualifying for any other federal or state grant or program
administered by the state or a political subdivision.
(e) To qualify for a scholarship, a parent, guardian, or custodian
must apply for the scholarship in the manner prescribed by the
division.
Sec. 9. The maximum amount that may be awarded under this

chapter for all eligible services provided to an eligible child in a
state fiscal year is six thousand eight hundred dollars ($6,800).
Sec. 10. The total amount of all scholarships awarded for
eligible services provided in a state fiscal year may not exceed the
amount appropriated for scholarships for that state fiscal year (less
any amount appropriated to administer the scholarship program).
Sec. 11. (a) Scholarships shall be awarded for eligible services
at the rates, in the manner, and in the amounts determined by the
division.
(b) The division shall distribute scholarship amounts on a
periodic basis determined by the division.
(c) The amount distributed under subsection (b) must be based
on the number and length of days of eligible services received by an
eligible child during the period for which the amount is distributed.
(d) The division may distribute any part of a scholarship to the
parent, guardian, or custodian of the eligible child. For a
distribution described in this subsection to be valid, the
distribution must be endorsed by both the parent, guardian, or
custodian of the eligible child and the eligible provider that
provides the eligible services.
Sec. 12. (a) To be eligible to receive scholarship payments, an
eligible provider:
(1) may be required by the division to register with the
division on a form prescribed by the division;
(2) may not discriminate on the basis of race, color, or
national origin; and
(3) must otherwise comply with all applicable law and rules
governing the provider.
(b) The division may suspend or terminate an eligible provider's
participation in the program if the eligible provider fails to comply
with subsection (a).
Sec. 13. (a) The division may adopt rules under IC 4-22-2 to
implement this chapter.
(b) The division may adopt emergency rules in the manner
provided under IC 4-22-2-37.1 to implement this chapter.
Sec. 14. (a) The early learning advisory committee is established
to do the following:
(1) Create accountability measures for the program and
perform longitudinal review of the results of the measures.
(2) Conduct periodic statewide needs assessments concerning
the quality and availability of early education programs for
children from birth to the age of school entry, including the

availability of high quality prekindergarten education for low
income children in Indiana.
(3) Identify opportunities for, and barriers to, collaboration
and coordination among federally and state funded child
development, child care, and early childhood education
programs and services, including governmental agencies that
administer the programs and services.
(4) Assess the capacity and effectiveness of two (2) and four
(4) year public and private higher education institutions in
Indiana for the support of development of early educators,
including:
(A) professional development and career advancement
plans; and
(B) practice or internships with Head Start or
prekindergarten programs.
(5) Other duties as determined necessary by the chairperson
of the committee.
(6) Not later than June 30 of each year, develop and make
recommendations to the governor and, in an electronic format
under IC 5-14-6, to the legislative council concerning the
following:
(A) The results of the committee's work under subdivisions
(1) through (5).
(B) The results of the program.
(b) The committee consists of five (5) members appointed by the
governor as follows:
(1) A representative of the department of education.
(2) A representative of the division.
(3) A representative of a Head Start program under 42 U.S.C.
9831 et seq.
(4) A representative of a family advocacy group that has an
interest in early childhood education.
(5) An early childhood education provider.
(c) The governor shall appoint the chairperson of the committee.
(d) The division shall staff the committee.
(e) The expenses of the committee shall be paid from the funds
of the division.
(f) Each member of the committee who is not a state employee
is entitled to the minimum salary per diem provided by
IC 4-10-11-2.1(b). The member is also entitled to reimbursement
for traveling expenses as provided under IC 4-13-1-4 and other
expenses actually incurred in connection with the member's duties

as provided in the state policies and procedures established by the
Indiana department of administration and approved by the budget
agency.
(g) Each member of the committee who is a state employee but
who is not a member of the general assembly is entitled to
reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(h) Each member of the committee who is a member of the
general assembly is entitled to receive the same per diem, mileage,
and travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem,
mileage, and travel allowances paid under this section shall be paid
from appropriations made to the legislative council or the
legislative services agency.
(i) The affirmative votes of a majority of the voting members
appointed to the committee are required for the committee to take
action on any measure, including final reports.
Sec. 15. This chapter expires July 1, 2016.

SOURCE: IC 20-51-1-4.5; (13)IN1004.1.8. -->
SECTION 8. IC 20-51-1-4.5, AS ADDED BY P.L.92-2011,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4.5. "Eligible individual" refers to an individual:
who:
(1) who has legal settlement in Indiana;
(2) who is at least five (5) years of age and less than twenty-two
(22) years of age on the date in the school year specified in
IC 20-33-2-7;
(3) who either has been or is currently enrolled in an accredited
school;
(4) who is a member of a household with an annual income of not
more than one hundred fifty percent (150%) of the amount
required for the individual to qualify for the federal free or
reduced price lunch program; and(5) to which either of the following applies:
(A) The individual either:(A) (i) was enrolled in grade 1 through 12 in a school
corporation that did not charge the individual transfer tuition
for at least two (2) semesters immediately preceding the first
semester for which the individual receives a choice
scholarship under IC 20-51-4; or
(B) (ii) received a scholarship from a scholarship granting
organization under IC 20-51-3 or a choice scholarship under
IC 20-51-4 in a preceding school year, including a school
year that does not immediately precede a school year in
which the individual receives a scholarship from a
scholarship granting organization under IC 20-51-3 or a
choice scholarship under IC 20-51-4. (B) The individual received an early education scholarship
under IC 12-17.2-3.7.

SOURCE: ; (13)IN1004.1.9. -->
SECTION 9. An emergency is declared for this act.